Market surpasses 6000-point level: ASX closed 2.4% higher

Market Reports

by Rachael Jones

The Australian share market rose at the open and managed to close 2.4 per cent higher. The banks gave the market a boost today. Virgin Money UK (ASX:VUK) and Credit Corp Group (ASX:CCP) shares did well today. Shares in Gold Road Resources (ASX:GOR) fell today. The aussie dollar stalled on its rally and the iron ore price is up almost 5 per cent.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 146 points higher to finish at 6,145.

Futures market

Dow futures are suggesting a rise of 55 points.
S&P 500 futures are eyeing a fall of 4 points.
The Nasdaq futures are eyeing a rise of 8 points.
And the ASX200 futures are eyeing a 38 point rise tomorrow morning.

Local economic news

The latest NAB Business survey shows that business conditions, while still negative, rose 10 points in May after having fallen to GFC lows the previous month. Confidence jumped 25 points, although it still sits in negative territory.

Company news

Comet Ridge (ASX:COI) announced that the Mahalo Gas Project (MGP) has been granted Queensland State Government environmental approval for the gas development. This is the second of two environmental steps required for the project to move forward to production and follows the Commonwealth Government Environment Protection and Biodiversity Conservation Act (EPBC) approval in May. The MGP has now met all federal and state environmental regulatory requirements, in order to proceed. This project is held 40 per cent by Comet Ridge Limited, 30 per cent by Santos (ASX:STO) and 30 per cent by APLNG (where Origin Energy (ASX:ORG) is the development Operator). Shares in Comet Ridge (ASX:COI) closed 10 per cent higher at $0.11.

CSL (ASX:CSL) has agreed to exercise its right to acquire Vitaeris Inc in an acquisition cost described as modest, with additional R&D expenses in financial 2021 between $30 million to $50 million. Vitaeris is a clinical-stage biotechnology company focused on the phase III development of a treatment for rejection in solid organ kidney transplant patients.

UAC Energy released a bidders statement today increasing its stake in Infigen Energy (ASX:IFN) urging shareholders to accept its 80 cent stapled security offer.
Collins Foods (ASX:CKF) has appointed Drew O'Malley as CEO of the Group effective from 1 July 2020. His appointment coincides with the planned retirement of current Group Managing Director and CEO, Graham Maxwell.

Best and worst performers of the day

The best performing sector was Financials adding 4.8 per cent while the worst performing sector was Healthcare, shedding 1.5 per cent.

The best performing stock in the S&P/ASX 200 was Virgin Money UK (ASX:VUK), rising 16.4 per cent to close at $2.20. Shares in Credit Corp Group (ASX:CCP) and Worley (ASX:WOR) followed higher.

The worst performing stock in the S&P/ASX 200 was Gold Road Resources (ASX:GOR), dropping 9.4 per cent to close at $1.41. Shares in GWA Group (ASX:GWA) and Saracen Mineral Holdings (ASX:SAR) followed lower.

Asian markets

Mixed: Japan’s Nikkei has lost 0.4 per cent, Hong Kong’s Hang Seng has added 1.9 per cent and the Shanghai Composite has added 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,696 an ounce.
Iron ore price is 4.9 higher at US$105.67.
Iron ore futures are pointing to a fall of 1.1 per cent.
Light crude is US$0.31 higher at US$38.96 a barrel.
One Australian dollar is buying 69.86US cents.